Ombuds upgrades probe vs Tomas, et al.

CEBU, Philippines —  Former Cebu City mayor Tomas Osmeña and his allies in the City Council—former and outgoing councilors—are now facing formal criminal and administrative charges before the Office of the Ombudsman Visayas over the P18-billion development of what used to be Kawit Island at the South Road Properties.

The anti-graft office has upgraded for preliminary investigation and administrative adjudication the complaint filed by anti-graft crusader Crisologo Saavedra in 2019. In its letter dated April 27, 2022, the Ombudsman Visayas Field Investigation Bureau informed Saavedra that the respondents will be asked to answer the charges.

“The proceedings will be governed by the Rules of Procedure of the Office of the Ombudsman where respondents will be given the opportunity to answer the complaint and submit their countervailing evidence,” the letter states.

Aside from the former mayor, the others facing formal charges for alleged violation of Republic Act 3019 for conduct prejudicial to the best interest of the service are Councilors David Tumulak, Margarita Osmeña, Sisinio Andales, Alvin Arcilla, Eugenio Gabuya Jr., Jerry Guardo, Joy Augustus Young, Mary Ann Delos Santos, and Franklyn Ong. And private respondents Frederick Go and the board of directors of Universal Hotel and Resorts Inc. (UHRI)

The case stemmed from the city government’s joint venture agreement with UHRI for the development of Kawit Island into a world-class integrated resort and casino. 

Saavedra described the agreement as a “sweetheart deal” and “grossly disadvantageous” to the city. He said that under the resolution the City Council approved, the city government is only entitled to a 10-percent profit share when its capital investment in the venture is worth P10 billion out of the P18-billion.

In a supplemental complaint he filed yesterday, Saavedra said UHRI is disqualified to enter into the joint venture with the city for lack of technical and financial capabilities or experiences as required under the City Ordinance No. 2154.

“UHRI, a one year-old corporation, is not qualified to be a PPP qualified proponent and what more to be awarded the PPP project with no track record of technical experience on a similar project on Casino operations,”  Saavedra claimed.

He said the agreement also violated Section 9 of the Republic Act 7718 or the amended PPP law.

According to Saavedra, Osmeña also did not have the authority from the City Council when he signed the agreement with UHRI after the resolution sponsored by Gabuya was disapproved on May 11, 2018.

Saavedra prayed for the anti-graft office to suspend for six months the respondents who are still holding public office. He also pushed for the renegotiation of the contract to protect the interest of the city government.  – FPL (FREEMAN)